South Korea Lifts Ban on Crypto Ventures
South Korea is easing restrictions on cryptocurrency firms. The country’s Ministry of SMEs and Startups approved changes to the Venture Business Act. This move allows crypto companies to receive venture certification from September 16.
This step reverses a policy that has been in place since 2018. At that time, concerns about the speculative nature of the crypto market led to the ban. Consequently, cryptocurrency firms missed out on various benefits offered to traditional startups.
The shift reflects a growing acceptance of digital assets. Regulators now see crypto’s potential to fuel innovation, attract investment, and boost next-gen tech. President Lee Jae-myung’s recent election has further accelerated this change. His administration aims to promote digital finance reforms.
- Revised Venture Business Act allows crypto firms venture status.
- Access to venture status means eligibility for government support.
- Expected growth in blockchain, smart contracts, and cybersecurity sectors.
With South Korea’s crypto market projected to reach $1.3 billion by 2026, regulators hope this change positions the country as a hub for digital asset innovation. according to Han Seong-sook, Minister of SMEs and Startups, this reform aligns Korea with global crypto trends.
Despite embracing crypto, investor protection remains a priority. Recent measures include limiting high-risk crypto loans and setting caps on interest rates. Thes steps aim to prevent speculative trading and protect investors.
